Mar 31, 2018
1.Financial Risk Factors
The Company''s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company''s primary risk management focus is to minimize potential adverse effects of market risk or its financial performance. The Company''s risk management assessment, policies and processes are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and
the Company''s activities. The Board of Directors and the Audit Committee is responsible for overseeing the Company''s risk assessment and management policies and processes.
The Company has exposure to the following risks arising from financial instruments:
(i) Credit risk
(ii) Liquidity risk
(iii) Market risk Credit Risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. This exposure is principally from the Company''s receivables from customers. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The company has established norms for stage wise payments to lower the exposure. International transactions are backed by Letters of credit, confirmed by reputed banks, wherever found necessary. The Company establishes an allowance for doubtful debts and impairment that represents its estimate of incurred losses in respect of trade and other receivables and investments.
The Company takes a significant advance for its machine and has no history of any significant defaults from the customers end in payment of the sale consideration. And therefore has no history of expected credit loss.
Trade & other receivables
The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.
Cash and cash equivalents
The Company held cash and cash equivalents and other bank balances with credit worthy banks and financial institutions of Rs, 390.08 Lakhs (31 March 2017: Rs, 1,945.84 Lakhs, 01 April 2016: Rs, 2,188.34 Lakhs). The credit worthiness of such banks and financial institutions is evaluated by the management on an ongoing basis and is considered to be good.
Liquidity Risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company''s reputation.
As of 31st March 2018 the Company has working capital of Rs, 8,118.06 Lakhs (31 March 2017: Rs, 7,514.02 Lakhs, 01 April 2016: Rs, 6,939.89 Lakhs) including cash and cash equivalents and other bank balances of Rs, 390.08 (31 March 2017: Rs, 1,945.84 Lakhs, 01 April 2016: Rs, 2,188.34 Lakhs). Working capital is calculated as current assets less current liabilities.
Investment Risk
The investment of the Company in subsidiary companies is exposed to risks that the business of the subsidiary company is exposed. Accordingly the Company''s investment in its US subsidiary has been considerably impaired due to the business risk faced by the subsidiary resulting in the erosion of its value.
Market Risk
Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market rates and prices (such as interest rates, foreign currency exchange rates) or in the price of market risk-sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is attributable to all market risk-sensitive financial instruments, all foreign currency receivables and payables and all short term and non-current. The Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of its investments. Thus, the Company''s exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities in foreign currencies.
Currency Risk
The fluctuation in foreign currency exchange rates may have potential impact on the profit and loss account, where any transaction references more than one currency or where assets/liabilities are denominated in a currency other than the functional currency of the entity. Considering the countries and economic environment in which the Company operates, its operations are subject to risks arising from fluctuations in exchange rates in those countries. The risks primarily relate to fluctuations in USD and EURO against the respective functional currency of the Company. The Company does not use any derivative financial instruments to hedge foreign exchange and interest rate exposure. The company continuously monitors the foreign currency exposures and considering the natural hedge, selectively contracts for plain forward covers whenever found necessary.
2. Financial Risk Management
a) Management of liquidity risk
The Company''s principal sources of liquidity are cash and cash equivalents, borrowings and the cash flow that is generated from operations. The Company believes that current cash and cash equivalents, tied up borrowing lines and cash flow that is generated from operations is sufficient to meet requirements. Accordingly, liquidity risk is perceived to be low.
The following table shows the maturity analysis of the Company''s financial liabilities based on contractually agreed undiscounted cash flows as at the Balance sheet date:
3. CAPITAL MANAGEMENT
Risk management
The primary objective of the Company''s Capital Management is to maximize shareholder value. The Company monitors capital using Debt-Equity ratio, which is total debt divided by total capital plus total debt.
For the purposes of the Company''s capital management, the Company considers the following components of its Balance Sheet to be managed capital:
Total equity as shown in the Balance Sheet includes General reserve, Retained earnings, Share capital, Security premium. Total debt includes current debt plus non-current debt and subtracting cash and cash equivalents.
39 Effective April 1, 2017, the Company adopted the amendment to Ind AS 7, which require the entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non - cash changes, suggesting inclusion of a reconciliation between the opening and closing balances in the Balance sheet for liabilities arising from financing activities, to meet the disclosure requirement. There is no non cash adjustment and the amendment is not likely to have any significant impact in the future.
4. Recent Accounting Pronouncement
Appendix B to Ind AS 21, Foreign currency transactions and advance consideration: On March 28, 2018, Ministry of Corporate Affairs ("MCA") has notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 containing Appendix B to Ind AS 21, Foreign currency transactions and advance consideration which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency.
The amendment will come into force from April 1, 2018. The Company has evaluated the effect of this on the financial statements and the impact is not material.
Ind AS 115- Revenue from Contract with Customers: On March 28, 2018, Ministry of Corporate Affairs ("MCA") has notified the Ind AS 115, Revenue from Contract with Customers. The core principle of the new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity''s contracts with customers.
The standard permits two possible methods of transition:
- Retrospective approach - Under this approach the standard will be applied retrospectively to each prior reporting period presented in accordance with Ind AS 8- Accounting Policies, Changes in Accounting Estimates and Errors
- Retrospectively with cumulative effect of initially applying the standard recognized at the date of initial application (Cumulative catch - up approach) The effective date for adoption of Ind AS 115 is financial periods beginning on or after April 1, 2018.
The effective date for adoption of Ind AS 115 is financial periods beginning on or after April 1, 2018.
The Company will adopt the standard on April 1, 2018 by using the cumulative catch-up transition method and accordingly comparatives for the year ending or ended March 31, 2018 will not be retrospectively adjusted. The effect on adoption of Ind AS 115 is expected to be insignificant.
5. The balance sheet, statement of profit and loss, cash flow statement, statement of changes in equity, statement of significant accounting policies and the accompanying notes forms an integral part of the financial statements of the Company for the year ended March 31, 2018.
Mar 31, 2017
A BACKGROUND
Manugraph India Ltd, was established in the year 1972. The company is the largest manufacturer of single width web-offset printing presses in India and has a significant share of the world market for its products. The manufacturing facilities are located at Kolhapur in India and through its wholly owned subsidiary in Millersburg - USA. The company has its in-house R&D facilities with a combined strength of over 50 engineers at both locations. The Indian R&D facilities are recognized by Department of Scientific and Industrial Research - Ministry of Science and Technology , Government of India.
1. Remittances in foreign currency for dividend:
The company has remitted during the year dividend in foreign currency to non-resident shareholders. The particulars of dividend paid during the year are as under :
2. Disclosure as required by Accounting Standard - AS 18 âRelated Partiesâ of the Companies (Accounting Standards) Rules 2006.
I Relationships:
Subsidiaries
Constrad Agencies (Bombay) Private Limited Manugraph Americas, Inc. USA.
Key Management Personnel
Mr. Sanjay S. Shah - Vice Chairman and Managing Director
Mr. Pradeep S. Shah - Managing Director
Mr. Bhupal B. Nandgave - Whole Time Director (Works)
Relatives of key management personnel
Mr. Sanat M. Shah Mrs. Sudha S. Shah
Entities where Key Management Personnel exercise significant influence
Multigraph Machinery Company Limited Manubhai Sons and Company Mercongraphic FZC,
Multigraph Machinery Kenya Limited Manugraph Securities and Finance Private Limited
3. In the opinion of the Board of Directors, all the assets other than fixed assets and non current investments have value on realisation in the ordinary course of business atleast equal to the amount at which they are stated in the Balance Sheet.
4. Previous year figures are regrouped and re-arranged wherever necessary with those of the current year to make them comparable.
5. Disclosure as required by Accounting Standard - AS 17 âSegment Reportingâ of the Companies (Accounting Standards) Rules 2006.
In accordance with AS-17 âSegment Reportingâ, the Company has only one reportable primary business segment i.e. Engineering. However, the Company has secondary geographical segment which is disclosed in Consolidated Financial Statements as per AS-17.
6. Explanatory notes 1 to 39 form an integral part of the Balance Sheet and Statement of Profit and Loss and are duly authenticated.
Mar 31, 2016
1. In the opinion of the Board of Directors, all the assets other than fixed assets and noncurrent investments have value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.
2. Exceptional item represents the payments towards the Voluntary Retirement Scheme, 2015 introduced by the Company and opted by the employees during the year of Rs.308.00 lakhs. The deferred tax effect thereon of Rs.81.47 lakhs has been included as part of deferred tax under Tax Expense.
3. Previous year figures are regrouped and re-arranged wherever necessary with those of the current year to make them comparable.
4. Disclosure as required by Accounting Standard - AS 17 "Segment Reporting" of the Companies (Accounting Standards) Rules 2006.
In accordance with AS-17 "Segment Reporting", the Company has only one reportable primary business segment i.e. Engineering. However, the Company has secondary geographical segment which is disclosed in Consolidated Financial Statements as per AS-17.
5. Explanatory notes 1 to 39 form an integral part of the Balance Sheet and Statement of Profit and Loss and are duly authenticated.
Mar 31, 2015
A. BACKGROUND
Manugraph India Ltd, was established in the year 1972. The company is
the largest manufacturer of single width web-offset printing presses in
India and has a significant share of the world market for its products.
The manufacturing facilities are located at Kolhapur in India and
through its wholly owned subsidiary in Millersburg - USA. The company
has its in-house R&D facilities with a combined strength of over 50
engineers at both locations. The Indian R&D facilities are recognized
by Department of Scientific and Industrial Research - Ministry of
Science and Technology, Government of India.
b. The Company has only one class of shares issued and paid-up capital
referred to as equity shares having a par value ofRs. 2 per share. Each
holder of equity shares is entitled to one vote per share.
c. In the event of liquidation of the company, the holders of equity
shares will be entitled to receive remaining assets of the company,
after payment of all external liabilities. The distribution will be in
proportion to the number of equity shares held by the shareholders.
d. The General Reserve has been created in accordance with the
requirements of the erstwhile Companies (Transfer of Profit to Reserve)
Rules, 1975
Valuation methodology
i Raw Material, Components and Stores and spares :
Raw materials and components, stores are stated at and Spares lower of
cost and net realisable value.
ii Consumable Tools :
Consumable tools are stated at cost or below cost.
iii Work-in-progress and manufactured components :
Work-in-progress and manufactured are valued at components lower of
cost and net realisable value.
iv Finished Goods including stock-in-trade :
Finished products are valued at lower of cost and net realisable value
Excise duty is included in the value of finished products inventory.
a. The Company had introduced a Voluntary Retirement Scheme, 2013 in
the previous year which was accepted by various employees. The cost in
connection therewith of Rs. 1,079.12 lakhs has been shown as an
exceptional item. (refer note 38 )
b. During the year Managerial Remuneration paid is Rs. 214.80 lakhs which
is in excess of the limits of Section 198 of the Companies Act, 1956 by
Rs. 98.39 lakhs as the appointment was under the said Act. The Company
has made an application to the Central Government for approval of the
excess remuneration which is pending as of the Balance Sheet date. No
adjustments are made in these accounts pending approval for Rs. 98.39
lakhs of excess remuneration to directors. The Managerial Remuneration
paid in the previous year Rs. 202.89 lakhs in accordance with the
approval of the members in general meeting dated 1st August 2013 was in
excess of the limits specified by Section 198 of the Companies Act,
1956 by an amount of Rs. 89.61 lakhs for which the Company has received
approval from Central Government.
In accordance with the provisions of Schedule II to the Companies Act,
2013, effective from 1st April , 2014, the Company has revised the
useful life of its fixed assets. As a consequence of such revision, the
charge for depreciation is lower than the previously applied rates by Rs.
294.98 lakhs for the year ended March 2015. For assets that have
completed the useful lives as a consequence of the aforesaid revision,
the carrying value as on 1st April, 2014 of Rs. 168.01 lakhs has been
charged to the opening balance of the Surplus in Profit and Loss
Account. Deferred Tax effect thereon of Rs. 54.51 lakhs Is also adjusted
in the opening balance of Surplus in Profit and Loss Account.
2. Remittances in foreign currency for dividend:
The company has remitted during the year dividend in foreign currency
to non-resident shareholders. The particulars of dividend paid during
the year are as under :
3. Disclosure as required by Accounting Standard - AS 18 "Related
Parties" of Rule 7 of The Companies (Accounts) Rules 2014.
I Relationships:
Subsidiaries
Constrad Agencies (Bombay) Private Limited
Manugraph Americas, Inc. USA.
Key Management Personnel
Mr. Sanjay S. Shah - Vice Chairman and Managing Director
Mr. Pradeep S. Shah - Managing Director
Mr. B B Nandgave - Whole Time Director (Works)
Relatives of key management personnel
Mr. Sanat M. Shah
Mrs. Sudha S. Shah
Mr. Kushal Shah (upto 30.11.2013)
Entities where Key Management Personnel exercise significant influence
Multigraph Machinery Company Limited
Manubhai Sons and Company Mercongraphic FZC,
Multigraph Machinery Kenya Limited
4. Contingent liabilities and commitments
Particulars 2014-15 2013-14
i. Contingent liabilities
(a) Claims against the company not acknowledged
as debt; 36.10 21.31
(b) Guarantees; On account of guarantees executed
by the company's bankers: 6.79 8.29
On account of the guarantee given by the Company
bankers for the value of USD 4.25 million (PY USD
4.25 million) in favour of subsidiary's banker for
credit facilities availed by the subsidiary
Manugraph Americas Inc. from them 2,660.11 2,554.24
(c) Other money for which the company is
contingently liable Income-tax, sales tax, customs
duty, excise duty and service tax demands against
which the company has preferred appeals/ made
representation 874.31 1,027.95
On account of undertakings given by the company in
favour of Customs Authority: 870.00 870.00
Total 4,447.31 4,48179
ii. Commitments
(a) Unexpired letter of credit opened by Bank 141.08 -
(b) Estimated amount of contracts remaining to be
executed on capital account and not provided for; 0.56 1.40
(c) Uncalled liability on shares and other
investments partly paid - -
(d) Other commitments (specify nature). - -
Total 141.64 1.40
5. In the opinion of the Board of Directors, all the assets other than
fixed assets and non current investments have value on realisation in
the ordinary course of business atleast equal to the amount at which
they are stated in the Balance Sheet.
6. Exceptional item of previous year represents the payments towards
the Voluntary Retirement Scheme, 2013 introduced by the Company and
opted by the employees during the year of Rs. 1,079.12 lakhs. The
deferred tax effect thereon of Rs. 280.10 lakhs has been included as part
of deferred tax under Tax Expense.
7. Previous year figures are regrouped and re-arranged wherever
necessary with those of the current year to make them comparable.
8. Disclosure as required by Accounting Standard - AS 17 "Segment
Reporting" of the Companies (Accounting Standards) Rules 2006.
In accordance with AS-17 "Segment Reporting", the Company has only one
reportable primary business segment i.e.Engineering. However, the
Company has secondary geographical segment which is disclosed in
Consolidated Financial Statements as per AS-17.
9. Explanatory notes 1 to 41 form an integral part of the Balance
Sheet and Statement of Profit and Loss and are duly authenticated.
Mar 31, 2014
BACKGROUND
Manugraph India Ltd, was established in the year 1972. The company is
the largest manufacturer of single width web- offset printing presses
in India and has a significant share of the world market for its
products. The manufacturing facilities are located at Kolhapur in India
and through its wholly owned subsidiary in Millersburg - USA. The
company has its in-house R&D facilities with a combined strength of
over 50 engineers at both locations. The Indian R&D facilities are
recognized by Department of Scientific and Industrial Research -
Ministry of Science and Technology, Government of India.
1. Contingent liabilities and commitments
2013-14 2012-13
Description (Rs. in lakhs) (Rs. in lakhs)
I. Contingent liabilities
(a) Claims against the company not
acknowledged as debt; 21.31 37.12
(b) Guarantees;
On account of guarantees executed
by the company''s bankers: 8.29 8.29
On account of the guarantee given by
the Company bankers for the value
of USD 4.25 million (PY USD 4.25
million) in favour of subsidiary''s
banker for credit facilities availed
by the subsidiary Manugraph Americas
Inc. from them 2,554.24 2,31155
(c) Other money for which the company
is contingently liable
Income-tax, sales tax, customs duty,
excise duty and service tax demands
against which the company has
preferred appeals / made
representation 1,027.95 806.33
On account of undertakings given by
the company in favour of Customs
Authority: 870.00 1,005.00
Total 4,481.79 4,168.29
II. Commitments
(a) Estimated amount of contracts
remaining to be executed on capital
account and not provided for; 1.40 25.87
(b) Uncalled liability on shares and
other investments partly paid - -
(c) Other commitments (specify
nature). - -
Total 1.40 25.87
2. In the opinion of the Board of Directors, all the assets other than
fixed assets and non current investments have value on realisation in
the ordinary course of business at least equal to the amount at which
they are stated in the Balance Sheet.
3. Exceptional item represents the payments towards the Voluntary
Retirement Scheme, 2013 introduced by the Company and opted by the
employees during the year of Rs. 1,079.12 lacs. The deferred tax effect
thereon of Rs. 280.10 lacs has been included as part of deferred tax
under Tax Expense.
4. Previous year figures are regrouped and re-arranged wherever
necessary with those of the current year to make them comparable.
5. Segment Reporting as required by AS - 17 The operation of the
company represents one primary segment of activity relating to
"Production of Printing Machines" and the entire production operations
are located in India and therefore there are no separate reportable
segments as per AS -17 ''Segment Reporting''.
6. Explanatory notes 1 to 42 form an integral part of the Balance
Sheet and Statement of Profit and Loss and are duly authenticated.
Mar 31, 2013
BACKGROUND
Manugraph India Ltd, was established in the year 1972. The company is
the largest manufacturer of single width web- offset printing presses
in India and has a significant share of the world market for its
products. The manufacturing facilities are located at Kolhapur in India
and through its wholly owned subsidiary in Millersburg - USA. The
company has its in-house R&D facilities with a combined strength of
over 50 engineers at both locations. The Indian R&D facilities are
recognized by Department of Scientific and Industrial Research -
Ministry of Science and Technology, Government of India.
1. Disclosure as required by Accounting Standard - AS 18 "Related
Parties" of the Companies (Accounting Standards) Rules, 2006
I. Relationships: Subsidiaries
Constrad Agencies (Bombay) Private Limited
Manugraph Kenya Limited (upto 30.03.2012)
Manugraph Americas, Inc. USA. (formerly known as Manugraph DGM, Inc)
Entities where significant influence exists
Multigraph Machinery Company Limited Manubhai Sons and Company
Mercongraphic FZC, Multigraph Machinery Kenya Ltd.
Key Management Personnel
Mr. Sanjay S. Shah  Vice Chairman and Managing Director
Mr. Pradeep S. Shah  Managing Director
Mr S.M Mordekar  Whole-time Director (Works) upto 08.01.2013
Mr. B B Nandgave  Whole-time Director (Works) w.e.f 10.12.2012
Relatives of Key Management Personnel
Mr. Sanat M. Shah Mrs. Sudha S. Shah Mr. Kushal Shah
2. In the opinion of the Board of Directors, all the assets other
than fixed assets and non current investments have value on realisation
in the ordinary course of business atleast equal to the amount at which
they are stated in the Balance Sheet.
3. Confirmations from some of the creditors were not received by the
company and therefore their balances are as per books of account only.
4. Previous year figures are regrouped and re-arranged wherever
necessary with those of the current year to make them comparable
5. Segment Reporting as requried by AS-17
The operation of the company represents one primary segment of activity
relating to "Production of Printing Machines" and the entire production
operations are located in India and therefore there are no separate
reportable segments as per AS-17 ''Segment Reporting''.
6. Explanatory notes I to 41 form an integral part of the Balance
Sheet and Statement of Profit and Loss and are duly authenticated.
Mar 31, 2012
A) The Company has not issued any bonus shares during the last five
years.
b) Details of Shareholding in excess of 5%
c) The Company has only one class of shares issued and paid-up capital
referred to as equity shares having a par value of Rs. 2 per share.
Each holder of equity shares is entitled to one vote per share.
a) The General Reserve has been created in accordance with the
requirements of the Companies (Transfer of Profits to Reserve) Rules,
1975.
b) The company had been transferring voluntarily from its profit and
loss account to general reserve amounts in excess of the minimum amount
required to be transferred under the provisions of Companies (Transfer
of Profits to Reserves) Rules, 1975. As on 31st March, 2011 surplus
amount voluntarily transferred to general reserves aggregate
approximately Rs. 15,000 lakhs. In accordance with the opinion of a
learned counsel who opined that the surplus amount voluntarily
transferred to general reserves is not a compulsory reserve and would
form part of the free reserves of the company and with a view to have
sufficient balance in the profit and loss account, the company has
transferred back from its general reserve to profit and loss account an
amount of Rs. 10,000 lakhs.
a) Secured loan from Export-import Bank of India : Term loans under
production equipment finance programme.
Secured by first charge by way of hypothecation of moveable fixed
assets, present and future and mortgage of land and other immoveable
properties, present and future of the company.
b) Unclaimed dividends : There are no amounts due and outstanding to be
credited to Investor Education and Protection Fund.
The company provides gratuity to all employees. The benefit is in the
form of lumpsum payments to vested employees on resignation,
retirement, death while in employment or on termination of employment
of an amount equivalent to 15 days basic salary and dearness allowance
for each completed year of service. Vesting occurs upon completion of
five years of service. The company makes annual contributions to fund
administered by trustees and managed by Life Insurance Corporation of
India, for amounts notified by it. The gratuity benefit is a defined
benefit plan.
16 years National Savings Certificates - VIII Issue of the face value
of Rs. 10,000 (previous year: Rs. 52,500) have been deposited with the
sales-tax authorities and a customer.
ii The investment in Manugraph DGM Inc. includes 116,698 equity shares
which have been pledged with the bankers for credit facilities availed
by the subsidiary Manugraph DGM Inc.
iii The Company has assessed the impairment in the value of investment
in its wholly owned subsidiary Manugraph DGM Inc. on account of the
continuing slow down in US and other Western Economies. The impairment
in the value of the equity investment was assessed by an independent
valuer and based on the assessment carried out by the said valuer, the
company has made a provision for impairment of its investment in
Manugraph DGM Inc. being the diminution in its value other than
temporary of Rs. 6,000 lakhs. The Company has disclosed the same as an
exceptional item considering the incidence of the provision.
iv During the year the Company has sold its entire stake in Manugraph
Kenya Limited, Nairobi
v The Company has converted its Long Term Loan aggregating to Rs.
3,869.23 lakhs to its wholly owned subsidiary company M/s Manugraph DGM
Inc. into 100000 2% Preferred Stock with no par value during the year
for an aggregate paid-up value of USD 7.85 million. The preferred stock
are issued on non-cumulative basis and are redeemable at par at anytime
after three years. The preferred stock are convertible to equity at
anytime at the option of the holder.
The consumption in value has been ascertained on the basis of opening
stock plus purchases less closing stock as adjusted on account of
excesses and shortages as ascertained on physical count and write off
of obsolete and unserviceable components.
1 Disclosure as required by Accounting Standard - AS 18 "Related
Parties" issued by the Institute of Chartered Accountants of India
I Relationships:
Subsidiaries
Constrad Agencies (Bombay) Private Limited
Manugraph Kenya Limited (upto 30.03.2012)
Manugraph DGM Inc. USA.
Entities where significant influence exists
Multigraph Machinery Company Limited
Manubhai Sons and Company
Mercongraphic FZC, (w.e.f. 02.11.2010)
Key Management Personnel
Mr. Sanjay S. Shah - Vice Chairman and Managing Director
Mr. Pradeep S.Shah - Managing Director
Mr. S. M. Mordekar-Whole-time Director
Relatives of key management personnel
Mr. Sanat M. Shah - Father of Messers Sanjay Shah and Pradeep Shah
Mrs.Sudha S. Shah - Mother of Messers Sanjay Shah and Pradeep Shah
Mr.Kushal Shah - - Son of Mr. Sanjay Shah
II The Related party transactions are detailed as required by AS-18 in
the attached statement 1
2 Contingent Liabilities and Commitments
Description 2011-12 2010-11
(Rs. In lakhs) (Rs. In lakhs)
i Contingent liabilities
(a) Claims against the company not
acknowledged as debt; 102.76 102.40
(b) Guarantees;
On account of guarantees executed by
the company's bankers: 1,084.99 1,152.19
On account of the guarantee given
by the company in respect of credit
facilities availed by its subsidiary
Manugraph DGM, Inc. from their
bankers. Undertaking in the form
of Support Agreement in favour
of subsidiary's bankers and Bank
guarantee for the value of USD 4.25
million (PY USD 5 million ) 2,659.46 2,556.21
(c) Other money for which the company
is contingently liable
Income-tax, sales tax, customs duty,
excise duty and service tax
demands against which the company
has preferred appeals / made
representation 107.45 66.94
On account of undertakings given by the
company in favour of Customs
Authority. 1,240.00 2.175.70
TOTAL 5,194.66 6,053.44
ii Commitments
(a) Estimated amount of contracts
remaining to be executed on capital
account and not provided
for; 21.94 8.48
(b) Uncalled liability on shares and
other investments partly paid - -
(c) Other commitments (specify nature). - -
TOTAL 21.94 8.48
3 In the opinion of the Board, the current assets, loans and advances
are approximately at the value stated, if realized in the ordinary
course of business. The provision for depreciation and for all known
liabilities is adequate and not in excess of the amount reasonably
necessary.
4 Confirmations from some of the creditors were not received by the
company and therefore their balances are as per books of account only.
5 Prior year Comparatives
Hitherto, up to the year ended March 31, 201 1, the Company was
preparing the financial statements as per the pre-revised Schedule VI
to the Companies Act, 1956. During the year ended March 31, 2012, the
Revised Schedule VI notified under the Companies Act, 1956, has become
applicable to the Company. The Company has reclassified the published
previous year figures to conform to the norms of the Revised Schedule
VI. The adoption of the revised Schedule VI does not impact recognition
and measurement principles followed for preparation of the financial
statements. However, it significantly impacts presentation and
disclosures made in the financial statements, particularly presentation
of Balance Sheet.
6 Segment Reporting as required by AS - 17
The operation of the company represents wholly one segment of activity
relating to production of printing machines and the entire production
operations are located in India as per AS -17 'Segment Reporting'.
Accordingly all earnings, assets and liabilities relate to this
activity only.
7 Figures have been rounded off to the nearest thousand and shown in
rupees lakhs
8 Explanatory notes 1 to 42 form an integral part of the Balance Sheet
and Profit and Loss Account and are duly authenticated.
Mar 31, 2011
2010-2011 2009-2010
(Rs. in lakhs) (Rs. in lakhs)
1. Contingent Liabilities
(i) Claims against the company not
acknowledged as debts: 102.40 63.32
(ii) income-tax, sales tax, customs duty,
excise duty and service tax demands 66.94 55.21
against which the company has preferred
appeal/ made representation
iv> On account of guarantees executed by
the company's bankers: 1152.19 3398.55
ivi On account of undertakings given by the company in favour of
Customs 2175.70 3504.20
Authority:
ii On account of the guarantee given by the company in respect of
credit facilities availed by its subsidiary Manugraph DGM, Inc. from
their bankers :
Undertaking in the form of Support Agreement in favour of subsidiary's
bankers 2556.21 3266.67 and Bank guarantee for the value of USD 5
million.
2. In the opinion of the Board, the current assets, loans and advances
are approximately at the value stated, if realised in the ordinary
course of business. The provision for depreciation and for all known
liabilities is adequate and not in excess of the amount reasonably
necessary.
3. Confirmations from some of the creditors were not received by the
company and therefore their balances are as per books of account only.
4. The company has during the year obtained waiver from payment of
deferred payment liability of Rs. 315.81 lakhs due towards balance
consideration payable for purchase of shares of subsidiary Manugraph
DGM Inc. The company has adjusted the said amount against the value,
5. The operation of the company represents wholly one segment of
activity relating to production of printing machines and the entire
production operations are located in India as per AS -17 Segment
Reporting'. Accordingly all earnings, assets and liabilities relate to
this activity only.
6. Related parties disclosure (as identified by the management)
Related party relationships
(a) Subsidiary companies
Constrad Agencies (Bombay) Private Limited Manugraph Kenya Limited
Manugraph DGM Inc. USA
(b) Entities where significant influence exists
Multigraph Machinery Company Limited Manubhai Sons and Company
MercongraphicFZC, (w.ef. 02.11.2010)
(c) Key management personnel
Mr. Sanjay S. Shah. Vice-Chairman and Managing Director Mr. Pradeep S.
Shah, Managing Director Mr. Mohan R Harshe (Upto 15.11.2010) Mr. Arun K
Puri (01,08.2010 to 01.11.2010) Mr S. M. Mordekar (w.ef. 29.10.2010)
(d). Relatives of key management personnel
Mr. Sanat M. Shah (Father of Messrs. Sanjay and Pradeep Shah)
Mrs. Sudha S. Shah (Mother of Messrs Sanjay Shah & Pradeep Shah)
Mr. Kushal Shah (Son of Mr. Sanjay S. Shah)
7. Figures of the previous year have been re-grouped and re-arranged
wherever necessary to make them comparable with the figures of the
current year.
8. Figures in parenthesis are in respect of the previous year.
9. Figures have been rounded off to the nearest thousand and shown in
rupees lakhs.
Mar 31, 2010
1 Contingent liabilities
(i) Claims against the company not
acknowledged as debts : 63.32 33.03
(ii) Income-tax, sales tax, customs duty,
excise duty and service tax demands against 55.21 91.55
which the company has preferred appeals/made
representations
(iii) Unexpired letters of credit opened
by banks amount to : 214.58 12.51
(iv) On account of guarantees executed
by the companys bankers 3398.55 8.34
(v) On account of undertakings given
by the company in favour of Customs 3504.20 953.50
Authority
(vi) On account of the following guarantees given by the company in
respect of credit facilities given to its subsidiary Manugraph DGM,
Inc. by their bankers :
Undertaking in the form of support agreement in favour of subsidiarys
3266.67 3861.85 bankers and bank guarantee for the value of USD. 5 million
2 The current assets, loans and advances are approximately of the value
stated, if realised in the ordinary course of business. The provision
for depreciation and for all known liabilities is adequate and not in
excess of the amount reasonably necessary.
3 Micro, Small and Medium Enterprises Development Act, 2006 (MSMED) The
company has amounts due to suppliers under MSMED as at 31st March,
2010. The discloure pursuant to the said Act is as under :
4 Confirmations from some of the creditors were not received by the
company and therefore their balances are per books of account only.
5 Revenue expenses on research and development activities amounting to
Rs. 183.23 lakhs (previous year Rs. 431.28 lakhs) as certified by the
management have been debited to the profit and loss account, per past
practice of the company.
6 The company provides gratuity to all employees. The benefit is in
the form of lumpsum payments to vested employees on resignation,
retirement, death while in employment or on termination of employment
of an amount equivalent to 15 days basic salary and allowance for
each completed year of service. Vesting occurs upon completion of five
years of service. The company makes annual contributions to fund
administered by trustees and managed by Life Insurance Corporation of
India, for amounts notified by it. The gratuity benefit is a defined
benefit plan.
Reconciliation of opening and closing balances of the present value of
the defined benefit obligation
7 The operation of the company represents wholly one segment of
activity relating to production of printing machines and the entire
production operations are located in India. Accordingly all earnings,
assets and liabilities relate to this activity only.
Note:
The consumption in value has been ascertained on the basis of opening
stock plus purchases less closing stock as adjusted on account of
excesses and shortages ascertained on physical count and write off of
obsolete and unserviceable components.
Note:
The consumption in value has been ascertained on the basis of opening
stock plus purchases less closing stock as adjusted on account of
excesses and shortages ascertained on physical count and write off of
obsolete and unserviceable components.
Note :
In giving the above information, the company has taken the view that
spares and components as referred to in clause 4D(c) of part II of
Schedule VI cover only such items as go directly into producti
on.
8 Related parties disclosure (as identified by the management)
Related party relationships
(a) Subsidiary companies Constrad Agencies (Bombay) Private
Limited
Manugraph Kenya Limited
Manugraph DGM Inc. USA.
(b) Other related parties
where control exists Multigraph Machinery Company Limited
Manu Enterprises Limited
Manubhai Sons and Company
(c) Key management
personnel Mr. Sanjay S. Shah, Vice-Chairman
and Managing Director
Mr. Pradeep S. Shah, Managing Director
(d) Relatives of key
management personnel Mr. Sanat M. Shah, (Father of Messrs.
Sanjay and Pradeep Shah)
Mrs. Ameeta S. Shah, (Spouse of
Mr. Sanjay S. Shah)
Mrs. Rupali P. Shah, (Spouse of
Mr. Pradeep S. Shah)
9 Figures of the previous year have been regrouped to confirm
with this years groupings wherever necessary.
10 Figures in parenthesis are in respect of the previous year.
11 Figures have been rounded off to the nearest thousand and
shown in rupees lakhs.
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